Employment practices liability insurance (EPL)

Compensation claims by employees against their employers or managers have increased since the 1990s, particularly in the United States, but also in other countries with a Common Law legal system (e.g. the United Kingdom, Canada and Australia), explosive growth.

What is insured?In the United States, for example, the following compensation claims by employees and/or equality authorities are covered:

Wrongful termination of employment

(Sexual) harassment in the workplace

Discrimination in the workplace on the basis of race, ethnicity, religion, gender, nationality, age, disability, family status, etc. (employment-related discrimination)

Wrongful failure to employ or promote and wrongful deprivation of a career opportunity

Defamation and wrongful infliction of emotional distress

Invasion of privacy

Employment practices liability insurance is therefore particularly recommended for companies with subsidiaries and branch offices in the USA, United Kingdom, Canada and Australia.

Who provides the insurance?In Germany, EPL insurance is typically the preserve of Anglo-American insurance companies. It is often recommended that foreign companies belonging to the policyholder should have the contract conditions set down in English.